Ethereum Bulls With Strong Buying at Lower Levels as It Breaks $1,700 High

Ethereum price (ETH) has started resuming the upward momentum after breaking the initial resistance at $1,600. The largest cryptocurrency is expected to rise to the high of $2,050 if the bullish momentum continues.

Long-term analysis of the Ethereum price: bullish

In the meantime, the altcoin is trading in the overbought region of the market. The current uptrend could face rejection at the recent high. However, in a market with a strong uptrend, the overbought and oversold conditions of the market may not last. On the downside, if Ether fails at the recent high, it will fall back to the previous low above $1,300. Meanwhile, ETH /USD is trading at $1,716.30 at the time of writing.

Ethereum Indicator Analysis

Ether is at level 66 on the Relative Strength Index for period 14, indicating that Ether is in the bullish trend zone and can continue to move higher. The altcoin is above the 80% area of the daily stochastic. This means that Ether has been trading in the overbought region since July 18. Sellers might be attracted to the overbought region. The 21-day line SMA and the 50-day line SMA are on the upside, indicating an uptrend. 

Key resistance zones: $2,500, $3,300, $4,000

Key support zones: $2,000, $1,500, $1,000

What is the next direction for Ethereum? 

ETH/USD has resumed its uptrend as the altcoin has reached the high of $1,785. Meanwhile, the uptrend from July 19 retraced a candlestick that tested the 61.8% Fibonacci retracement level. The retracement suggests that ETH will rise to the 1.618 Fibonacci Extension level or $2,047.43. The price action shows that Ether is in a small retracement as it has reached the low of $1,715.63.

Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their research before investing funds.